NPT Limited’s Strong Leasing Activity Lifts Weighted Average

NPT Limited’s Strong Leasing Activity Lifts Weighted Average Lease Term to 6.2 years

Strong leasing activity at NZX-listed property company NPT Limited has lifted its weighted average lease term (WALT) to 6.2 years, up from 3.4 years seven months ago at 31 March 2012, the company announced today.

NPT chief executive Kerry Hitchcock says, “Two leases have recently been signed in NPT’s Auckland property in the AA Centre at 99 Albert Street. AA Insurance has signed a six year lease, with a six year right of renewal, for 5,798m2 extending over six floors of the 18-level building. We will be refurbishing the ground floor and upgrading the washrooms on five floors over the next eight months.”

Also in the AA Centre, the Department of Internal Affairs has renewed a lease for a further three year term for two floors for an area totalling 2,020m2.

East Christchurch’s Eastgate Shopping Centre has two new leases in place. In late October national bookstore and stationery retailer PaperPlus confirmed a lease for a 375m2 ground floor space; the lease is for six years with a six year right of renewal. The fit-out of the new store will take place immediately to enable it to open in early December; this will allow PaperPlus to take advantage of Eastgate’s brisk Christmas trade.

Number One Shoes recently signed a six year lease for 800m2 of the centre’s newly reconfigured ground floor space. The new store is expected to open in mid-November. Lincraft, the Australian fabric, craft and home furnishing store, opens its new store in late November. It has an eight year lease for a 1500m2 space.

In May, Heinz Wattie’s signed an extended lease for 15 years (to 2027) for its National Distribution Centre, located in Hastings, for 50,000m2 of space.

From 1 October NPT has terminated its head lease early over Christchurch’s Avonhead Shopping Centre; the lease had almost 14 months to run. No termination or make-good costs associated with the early termination were payable. NPT says that this early termination is a positive step for the company; there were risks in the head lease arrangements with vacancies and make-good costs. The lease had provided minimal income to the company and was a distraction for management. Having terminated its head lease obligations on Hornby’s HWMC Warehouse property and Avonhead NPT can better focus on its own properties.

” We are very pleased to see NPT’s weighted average lease term increase from 3.4 years to 6.2 years over a seven month period. The company has received tremendous support from the real estate community and our team has worked hard to secure these leases. We believe the increased WALT is a signal of strong tenant demand as well as confidence in the company’s properties,” says Mr Hitchcock.

NPT Limited is an NZX-listed company (NPT). It has a diversified portfolio of retail, commercial and industrial properties.

ENDS

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